What’s Poppin’,

This is the Master Money Newsletter. The Money Newsletter that exists to fatten your wallet and celebrate your money wins. Where else can you get a best friend and a cheerleader at the same time?

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Here’s what we have on deck today:

📰 Read: 10 Tips to Negotiate Your Salary

📺 Watch: The Complete Guide to VOO

🎧 Listen: The Ultimate Guide to Generational Wealth

Bonus! Do high credit score borrowers really have to pay more?

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💸 10 Tips to Negotiate Your Salary

Income is the most important factor in building wealth. Today we are going to give you some tips on how to increase your income. Strap in, because mastering this game-changing skill is your ticket to accelerating your path to wealth.

🧠 Salary negotiation: It's a SKILL, not a guessing game. You've gotta work it, hone it, and practice it like a boss. Our salary negotiation podcast episodes and FREE EBOOK are your go-to guides to get started.

The payoff? Business Insider found that just an extra $5K a year can add over a MILLION dollars to your career earnings. That's a no-brainer, right?

Hate negotiating? Don't sweat it. Even introverts can learn the art of salary negotiation, and we've got your back.

👉 Ready to up your game? Here's your 10-step plan to winning the salary negotiation battle:

1️⃣ Start Early:

Start negotiating from the moment you're asked about salary expectations. Instead of revealing a number, ask for the budgeted range for the role. Use phrases like, "Can you tell me the salary range for this level? Happy to let you know if it’s within my range, and we can discuss specific numbers later when I’ve met the team."

2️⃣ Zip it Up:

Keep your current salary to yourself. If asked, deflect by asking, "What does this role offer?" This puts you in the driver's seat and gives you valuable information on what they're willing to pay.

3️⃣ Intel Overload:

During interviews, ask questions to gather useful info for later negotiations. Find out the team's priorities, why the role is open, the biggest challenges for the role, and the team's org structure. These questions are extremely important so that you can find the answers you need to get the job done.

4️⃣ Massive Company Maneuvers:

At large companies, compensation may be formulaic and decided by a separate committee. This can make it hard to negotiate. The way to combat this is to use "new information," like competing job offers, to reopen negotiations when needed.

5️⃣ Reading Between the Lines:

Analyze your initial offer for insights into the company's perception of your value. If it's low, gather feedback to correct misconceptions; if it's high, consider pushing for even more.

6️⃣ Win Hearts and Minds:

Demonstrate your value by discussing how you can create a meaningful impact, sharing ideas based on your interviews, and addressing potential obstacles to your taking the role.

The key here is winning over the right person. You want the decision-makers to love you. Or those who will go up to bat for you.

7️⃣ Knowledge is Power:

Research is your superpower when negotiating. Research factors like the competitiveness of the offer, equity, vesting schedules, taxes on bonuses, and stock value to make an informed decision.

8️⃣ Compare and Contrast:

We all know money talks. But, if you love the company there are some other considerations.

Look beyond compensation when comparing offers. Consider company trajectory, promotion policies, manager influence, team visibility, and the company brand's worth to your career growth.

9️⃣ Make the Ask:

When asking for more money, start with the low range as your highest desired number.

For instance, if you want $100K, say you expect to be in the $100K-130K range, leaving room for negotiation above your highest number.

Always start high.

🔟 Practice Makes Perfect:

Negotiation is a skill that needs to be worked on, defined, and practiced.

Listen to salary negotiation episodes and read resources like the free ebook at https://www.mastermoney.co/get-a-raise-ebook to refine your strategy and become a master negotiator. Remember, a $5K annual bump can add up to a million dollars more over your career!

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Will High Credit Borrowers Pay More Fees?

You may have seen this graphic circling around. I could not find any good information on if this was true so I decided to take matters into my own nerdy hands. Ya boy decided to find out.

Turns out, there's more to the story—like the recent adjustments to mortgage loan fees that benefit borrowers with higher credit scores. 🏡💰

So here's the scoop: Borrowing money to buy a home is no simple task, and one key factor is the "loan-level price adjustment" (LLPA). Don't confuse this with your interest rate; it's an extra fee calculated as a percentage of the loan value. 🧮

Factors that influence your LLPA include how much you're putting down, your monthly income, and yes—your credit score. But before you start ranting about "subsidizing mortgages for the poor," let's get the facts straight. 📣

Recent changes to the LLPA system have actually reduced fees for high credit borrowers who put down 20% or more. Talk about a plot twist! For example, those with a credit score >780 and 25% down now pay 0% in fees (previously 0.25%). 🎉

That being said, borrowers with lower credit scores still pay higher fees. For instance, someone with a credit score <639 and 25% down will pay 2.125% of the loan value at close. In short, the recent changes are relative, not absolute. 📈

The takeaway? High credit borrowers with >20% down just got a sweet deal. But for everyone else, fees still apply, and those with lower scores and smaller down payments continue to pay the most. Your credit score still matters. 😉📉

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News You Can Actually Use

Teaching Kids About Money 💡

​CNBC highlights 10 smart ways to teach kids about money through the years, from simple budgeting lessons to understanding credit scores. The article emphasizes the importance of starting financial education early and gradually increasing complexity as children grow. Ideas include using allowances to teach budgeting, demonstrating smart shopping habits, opening a savings account, discussing college financing, and educating on credit scores and taxes. Teaching these skills is crucial to raising financially responsible adults.

Child IRA for Future Millionaires 🚀

​Forbes shares how a 529 plan-to-child IRA conversion can potentially turn your teen into a middle-class millionaire. By converting a 529 plan into a child IRA, parents can help their children take advantage of compound interest and long-term investments, paving the way for financial success. The article explains the benefits, tax implications, and guidelines for this conversion strategy and encourages parents to consider it as part of their child's financial planning.

Ramit Sethi's Netflix Documentary 🎥

​Ramit Sethi's new Netflix documentary is amazing, offering insightful and actionable advice on personal finance, investing, and wealth-building. The documentary features interviews with successful entrepreneurs and finance experts, sharing their tips and strategies for financial success. Through engaging storytelling and practical guidance, the documentary aims to empower viewers to take control of their financial future.

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High-Performance Book Club 📚

I get a ton of questions from listeners and readers as to what I am reading. So we decided to let you know via the newsletter. The High-Performance Book Club will be a way to share this. If you want to be Elite in your career, business, or with your wealth, then welcome to the club. If you would like to see our previous picks, you can find them here.

​https://kit.co/MasterMoney/high-performance-book-club/start-with-why-how​

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The Personal Finance Podcast 🎙️ ​ ​

​The Complete Guide to Generational Wealth: Part 1 How to Build Generational Wealth​

​The Complete Guide to Generational Wealth: Part 2 How to Pass Down Generational Wealth​

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Youtube

The Complete Guide to VOO (Vanguard S&P 500 Index ETF)

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